SHANGHAI, Oct. 8 (SMM) – LME zinc prices opened at USD 2,310.25/mt overnight, then consolidated around USD 2,310/mt during Asian trading hours, but volatility was up during European trading hours, touching as high as USD 2,344.5/mt. LME zinc prices closed at USD 2,328.75/mt, up USD 14.25/mt or 0.62%. Trading volumes increased by 3,490 to 10,617 lots, and total positions decreased by 179 to 299,000 lots.
Major economic indicators released overnight were disappointing. Germany's industrial output during August dropped 4%, and August manufacturing orders were also downbeat, triggering concerns over a recession in German. The IMF lowered its forecast of global economic growth this year by 0.1 percentage point to 3.3%, pushing down the US dollar index as well as European and US stocks.
Chinese markets reopened today from the Chinese National Day holiday. A falling US dollar index will bolster base metals prices somewhat, but investors turn cautious after the IMF lowered its expectations of global economic growth this year, awaiting the result of the Fed's policy meeting minutes. LME zinc prices will fluctuate between USD 2,310-2,340/mt today, and SHFE 1412 zinc contract prices will move between RMB 16,800-16,950/mt, with spot premiums between RMB 150-200/mt against SHFE 1412 zinc contract prices.